Austco Healthcare Delivers Record FY26 Revenue and Profit Growth

Record Financial Performance Driven by Organic Growth and Acquisitions

Austco Healthcare Limited (ASX:AHC) has reported a standout FY26 with revenues climbing 16% to $94.2 million and net profit after tax (NPAT) soaring 52% to $9.0 million. EBITDA also rose 14% to $14.9 million, reflecting a business firing on multiple cylinders. This performance stems from a combination of organic expansion and the full-year contribution of G&S Technologies, the latest acquisition completed last year.

While the first half of FY26 saw a robust 30.7% revenue increase, the second half growth moderated to 3.4%, illustrating the lumpy nature of Austco’s project-based delivery model. Despite this, the company maintained a strong gross margin of 53.4%, up from 52.0% in the prior year, supported by lower input costs and supply chain efficiencies achieved through integration of acquired businesses.

Expanding Software and Maintenance Revenue Supports Recurring Income

Software and Software Maintenance Agreement (SMA) revenues grew 19% to $11.4 million, now representing 12.0% of total revenue, up from 11.7% in FY25. This growth is anchored by a landmark ten-year, $4.2 million SMA contract at Jurong Health Complex in Singapore, which converts prior installation projects into a decade-long annuity stream. Austco’s strategy to deepen recurring revenue from software and maintenance is gaining traction, enhancing margin resilience and platform stickiness.

Robust Order Book and Cash Position Signal Future Growth Potential

Unfilled Contracted Revenue (UCR), a key forward-looking indicator, rose 13% since June 2026 to $51.2 million, reflecting a healthy pipeline of confirmed orders yet to be delivered. Although the order book is subject to foreign exchange fluctuations; approximately 80% of UCR is denominated in foreign currencies; the recent uplift is attributed to genuine new contract wins rather than currency effects.

Cash reserves strengthened to $16.3 million at year-end, up from $14.5 million, despite paying $6.0 million in earn-out obligations for prior acquisitions. Austco remains debt-free, providing flexibility to pursue further acquisitions or organic investments without diluting shareholders.

Strategic Acquisitions Deepen Market Presence Across Regions

FY26 marked the completion of Austco’s fourth reseller acquisition in three years with Medical Communications Systems (MCS) in South Australia, acquired for $2.24 million upfront plus a performance-based earn-out. This deal follows a consistent formula applied to prior acquisitions like Teknocorp, Amentco, and G&S Technologies, blending cash payments with earn-outs to align vendor incentives and fund growth from operating cash flow.

The acquisitions have expanded Austco’s footprint, particularly in Australia and New Zealand where revenue surged 38.1% to $52.8 million, now representing 56% of group revenue. North America contributed 32% of revenue, growing 11%, while Asia and Europe saw softer results due to timing of installations and foreign exchange impacts.

Investing in AI and Platform Innovation to Sustain Competitive Edge

Austco invested $4.8 million in FY26 to enhance its Tacera platform, developing AI-enabled capabilities such as predictive clinical intelligence, workflow optimisation, and system health monitoring. These innovations aim to deepen customer engagement, widen recurring revenue streams, and differentiate Austco’s clinical communication solutions in a competitive global market.

Management emphasises that while demand for healthcare digitalisation is structural; driven by ageing populations and workforce shortages; the timing of hospital capital programs remains a variable. Nonetheless, Austco enters FY27 with confidence, supported by a strong sales pipeline, growing recurring revenue, and a robust balance sheet.